ASC Advisors September 2025 Newsletter
ASC Advisors September 2025 Newsletter
Welcome to ASC Advisors’ monthly newsletter, where we provide thoughts around recent developments affecting the alternative investment management industry, as well as provide updates on our firm and team.
Looming Fed Rates Cuts
At the Federal Reserve’s recent Jackson Hole meeting, Chair Jerome Powell signaled that interest rate cuts are likely coming in September, providing optimism in the markets. Although he did not explicitly say rates would be cut, he emphasized a shift in the balance of risk, citing the softening of the labor market and slowdown in job growth as reasons that might call for an adjustment in policy. One interesting remark was related to comments about tariff-related inflation being potentially short-lived rather than persistent.
Although Powell hinted at rate cuts and the recent consumer price inflation (CPI) data came in cooler than expected, the heightened Producer Price Index (PPI) suggests that a rate cut may not be the right path forward. PPI surged, outpacing forecasts and potentially signaling that consumers will face higher costs and inflation. Given this data, a rate cut may fuel inflation by making it cheaper to borrow and increasing money supply.
How the Fed approaches policy in September will remain a major area of focus for the press, and the release of any macro data leading up to that date will be heavily scrutinized and discussed by investors, reporters and other market participants.
Secondaries Market Surge
The secondary market continues to expand and establish a crucial and growing role in private markets. Secondary transactions have come to serve as essential liquidity outlets for both LP and GPs across private market asset classes, with GP-led deals, including multi and single-asset continuation vehicles and GP stakes becoming effective strategic tools for firms in private equity, venture capital, real estate and private credit.
Specifically, private equity stakes transactions hit record highs in H1, with transaction volume reaching $110 billion - a staggering 59% increase from H1 2024 and positioning activity to exceed $200 billion this year. LP-led deals continued to represent the majority - 54% - of the market, however GP-led transactions saw notable growth, rising 72% year-over-year. In Q2 2025, the VC direct secondary market in the U.S. hit $61.1 billion, according to new data from PitchBook, significantly higher than the $50 billion reported in Q4 2024.
Further, market participant profiles are diversifying, with endowments, sovereign wealth funds, and family offices expanding their presence on both the buy and sell side. Along with this increased activity, we continue to see significant interest from financial and private equity publications, both around industry trends and specific transactions, and expect the interest to grow further as activity in the space continues to expand.
Deal Momentum in Q2
While private equity deal volume hit its lowest point since Q2 2020 in the second quarter, industry leaders remain optimistic about increased activity in the second half of this year and moving forward. Blackstone’s Jon Gray told PitchBook that the “dealmaking pause is behind us,” pointing to a robust IPO pipeline as a sign of renewed momentum.
A range of factors has kept the IPO market subdued including a poor macro-environment due to evolving trade policies, the rise of private markets, as well private companies staying private longer than historical norms. There is optimism for the remainder of 2025 as momentum from specific sectors like AI and crypto dominate the stock market.
In real estate, institutional investors are re-engaging, particularly through joint ventures and infrastructure-linked strategies, according to Goodwin. This uptick signals renewed confidence, though not all market segments are recovering equally, leaving real estate managers and investors focused on identifying trends and opportunities in specific geographies and industries.
Looking ahead, the M&A market appears to be recalibrating rather than retreating, with investors prioritizing resilience, liquidity, and long-term value creation. That said, there are signs of an increase in activity on the horizon, including the aforementioned IPO pipeline and expected resumption of rate cuts in September.
Firm News
ASC Launches Digital Practice and Hires Ana Villarreal DuFlo
We are thrilled to have announced the launch of our dedicated Digital Media Practice in August, expanding our capabilities to better support the evolving communications needs of alternative investment managers.
To lead the practice, we’re excited to welcome Ana Villarreal DuFlo as Senior Director, Head of Digital Strategy. Our Digital Media Practice is designed to help our clients strengthen and optimize their digital presence and increase target audience engagement across key platforms—including LinkedIn, Google, X, and Meta. We’ve long supported alternative investment managers in building cohesive, targeted digital strategies, and now we’re strengthening that offering to deliver even more strategic support across brand building, investor relations, special situations, portfolio company engagement, and recruitment efforts
With over a decade of experience in financial services and strategic communications, Ana brings specialized expertise in digital media strategy and execution. Most recently, she was Senior Manager of Digital Strategy and Optimization at AIG, leading a high-performing team that supported global enterprise digital initiatives. She was a key contributor to AIG’s social media strategy, helping to significantly increase audience engagement, brand reach, and executive visibility.
Team Trip to ASC HQ
Quarterly, all ASC colleagues gather for a week at our Stamford headquarters. We host lunch and learns, strategize about upcoming activities and coordinate firm wide initiatives. We also coordinate fun team outings, dinners, coffee meetings and presentations so that we can grow closer face-to-face as partners. Below is a photo from one of our team dinners on the water.
